Question

The Family Restaurant chain had a 10% return on a $74,000 investment in new ovens. The investment resulted in increased sales and an increase in income that was 4% of the increase in sales. The increase in sales was:

Answer 1

Answer: $185,000

Step-by-step explanation:

The 10% Return on investing in the oven is said to be the same as 4% of the increase in sales.

Return on oven = 10% * 74,000

= $7,400

$7,400 is 4% of increase in sales;

Increase in sales = 7,400/4%

= $185,000